# Cost Management Techniques, ABC Costing

zintia13
Posts:

**13**Registered
I am not sure what i have done wrong, c

an anyone help me with this?

an anyone help me with this?

zintia13
Posts: **13**Registered

I am not sure what i have done wrong, c

an anyone help me with this?

an anyone help me with this?

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## Comments

114Registered, MAAT, AATQB, AAT Licensed AccountantWe know that Cleuch spends 3 hours per unit and Lomond takes 2.5 hours per unit. We need to work out the cost per labour hour so 850,000 / 170,000 = £5

Then we know that Cleuch budgeted for 40,000 units and Lomond budgeted for 20,000 units. Simply multiply them by the time taken then multiply again by the hourly rate.

So your calculation for Cleuch will be 3 x 40,000 = 120,000 x 5 = £600,000

And your calculation for Lomond will be 2.5 x 20,000 = 50,000 x 5 = £250,000

13Registered2Registered[A Contribution must not disclose any material from live assessments, AAT-produced or otherwise]